Cash Value Life Insurance Policy

A life insurance policy with a savings account component, such as a Whole Life or Universal Life policy.Cash Value and Cash Surrender Value: Cash Value refers to the monetary value of a life insurance policy that has a savings account feature of a Cash Vaue Policy. There are two kinds of cash values: Accumulated Cash Value refers to the amount of money in the savings account feature, which is not necessarily held in cash but could be invested (within the policy) in other assets such as mutual funds. Cash Surrender Value refers to the amount of money the policy owner would receive if they surrendered the policy; the Cash Surrender Value is equal to the Accumulated Cash Value minus any applicable Surrender Charge and minus any loans that the policy owner has taken out from the Cash Value.